BRITISH AIRWAYS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal arose against a question as to whether "Online Database Access or retrieval Service" was received by the appellant M/s. British Airways during the period from 18 -4 -2006 to 31 -5 -2008 from foreign based CRS service provider and liable to Service Tax in terms of Section 66A of the Finance Act, 1994 (hereinafter referred to as "the Act") on reverse charge mechanism basis. Holding against the appellant, following demand was raised:

(2.) 1. When it came to knowledge of Revenue that certain Airlines operating in India were availing "Online information and data base access or retrieval service" from foreign based CRS service providers and were liable to Service Tax as recipient of service, but no Service Tax due were deposited by them, investigation was made. It was revealed that those Airlines in terms of certain agreements with foreign based companies viz. M/s. Galileo International Partnership USA, M/s. Abacus Distribution System Pvt. Ltd. Singapore, M/s. Amadeus Marketing, S.A. Spain, M/s. Sabre Travels Information Network, USA and others, intended to facilitate reservation and ticket availability position to the Air Travel Agents in India through online computer system, commonly known as "Computer Reservation System". (CRS)/Global Distribution System (GDS) maintained by the above companies.

(3.) PER Contra summary of submissions of Revenue were as under: